# In the matter of CNS Fashion Retail Private Limited (IB)-1024(ND)2020

> NCLT judgment dated 2023-01-20. Citation: TCN-2023-NCLT-04975. The case pertains to a company petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-NCLT-04975
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cns-fashion-retail-private-limited-ib-1024nd2020-91a74091

## Summary

### Background

The case pertains to a company petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Hon'ble NCLAT had passed an order on 28.11.2022 in Company Appeal (AT) (Insolvency) No. 909 of 2022, titled 'Concept Group LLD vs. CNS Fashion Retail Pvt. Ltd.'

## Facts

Concept Group Limited filed a petition against CNS Fashions Retail Private Limited under Section 9 of the IBC, 2016. The NCLAT had previously passed an order on 28.11.2022 in a related appeal. The petition was admitted, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) and the declaration of a moratorium. Since the Operational Creditor did not propose an IRP, the court appointed Mr. Prabhjit Singh Soni as the IRP. The Operational Creditor was directed to deposit Rs. 2,00,000 to cover immediate expenses.

## Issues and analysis

### Issue 1: Whether the Company Petition IB-1024/ND/2020 …

**Ratio:** Section 9(5) of the IBC allows for the admission of a petition if it meets the

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**Reasoning:** The court, in view of the order dated 28.11.2022 passed by the Hon'ble NCLAT, found it

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**Interpretation:** Section 9(5) provides the criteria for admitting an application for initiation

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**Application:** The court applied Section 9(5) to the facts presented and admitted the

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## Parties

- **Judges:** SHRI. ASHOK KUMAR…; Shri. L. N.…
- **Appellants:** Concept Group…
- **Respondents:** CNS Fashions…

## Timeline

- **2022-11-28 — NCLAT Or…**: The Hon'ble NCLAT passed an order in Company Appeal (AT) (Insolvency) No. 909 of 2022,…
- **2023-01-20 — NCLT Ord…**: The NCLT admitted the company petition, initiated CIRP, declared a moratorium, and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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